The market was trading well early in the session despite a poor lead from the US, but then the Chinese came in suggesting banls lift their reserve ratios, yet another attempt to slow their economy. This was not well received by traders locally and Share Price Index futures plunged some 1.5% in late trade. Cash closed down 0.8% but our higher beta picks, i.e., smaller cap resources and energies were all sold off hard. This is too be expected. When we trade for teh higher returns we need to accept the higher volatility.